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They can, and that was the prevailing business model for a long time in the industry. The problem here is that it has little multiplicative power. Selling soft
by potatolicious 14y ago
They can, and that was the prevailing business model for a long time in the industry.
The problem here is that it has little multiplicative power. Selling software is lucrative, but it will rarely make you Fuck-You-Money, and the tech industry nowadays is all about the Fuck-You-Money.
Recurring revenue model = incredible potential for revenue growth = justification for insane valuation = gigantic exit, which is what everyone is now looking for in the age of Facebook and Google.
- rhizome 14y agoWho are you talking about when you say "the tech industry," who is "all about FYM?"
- potatolicious 14y agoThe tech "community", insofar as it can be generalized, in SF, SV, NYC, and beyond. People seem to have little interest in businesses that generate healthy revenues that will make a few people wealthy - people want to cash out like Sergey and Larry, and there's a stigma for settling for anything less. Note that I'm not saying this is a good thing, it probably isn't, but it's certainly the trend.
- rhizome 14y agoThat's kind of what I'm asking, though: how far can it be generalized to make your point? How did Sergey and Larry "cash out," by declining acquisition offers? I'm thinking that's not the best example for you here.